For years, Ethereum has faced criticism from Bitcoin maximalists who staunchly believe that Bitcoin is the only worthwhile cryptocurrency, despite the fact that Ethereum holds the second-highest percentage of the entire cryptocurrency market value. Recently, another Bitcoin maximalist, Steve Barbour, waded into the conversation, referring to Ethereum as “garbage.” This derogatory label was accompanied by his claim that Ethereum has no future. While his argument primarily revolves around Ethereum’s apparent failure to attract investors from the free market, it is crucial to analyze the validity of this criticism and explore Ethereum’s true potential.
Steve Barbour is the founder of Upstream Data, a mining infrastructure company that focuses on building off-grid Bitcoin mining rigs. Barbour’s scathing comment about Ethereum being “garbage” came at a time when Ethereum staking rewards had reached new lows. The declining profitability of staking activities, coupled with Barbour’s belief in Bitcoin’s superiority, likely drove his negative stance towards Ethereum.
Over recent months, the number of Ethereum in staking pools has steadily increased. However, this growth has not translated into increased profitability. According to CoinGecko, as of August 2023, liquid staking protocols accounted for 43.7% of the total 26.4 million ETH staked. Despite these figures, the annual percentage yield (APY) from ETH staking has consistently decreased over the years, plummeting from 18% in 2020 to a mere 3% in October.
The low APY has led many investors to question whether staking ETH remains a worthwhile endeavor. Barbour and other Bitcoin maximalists argue that Ethereum’s shift from proof-of-work to proof-of-stake consensus process undermines its claims of decentralization compared to Bitcoin. These critics assert that Bitcoin is the only “true” cryptocurrency, leaving all others, including Ethereum, worthless.
However, it is crucial to acknowledge that Ethereum has successfully built a massive ecosystem and garnered a significant number of supporters. Its diverse range of applications, including smart contracts and decentralized finance (DeFi) projects, has attracted attention from both developers and investors. While Barbour’s criticism cannot be disregarded entirely, it is essential to consider the broader context and genuinely assess Ethereum’s value.
It is worth noting that Bitcoin maximalists have not limited their criticism to Ethereum alone. Max Kaiser, another prominent Bitcoin supporter, has openly criticized XRP, claiming that it is centralized. These frequent attacks on alternative cryptocurrencies highlight the divided opinions within the crypto community.
Despite the criticism, Ethereum continues to hold its ground in the market. As of the time of writing, Ethereum’s price stands at $1,550, reflecting a 1.65% drop in the past 24 hours. However, Ethereum has faced challenges in maintaining its strength compared to Bitcoin, which has witnessed a 6.39% increase in dominance over altcoins in the past week.
ETH bulls have struggled to push the price above $1,600, and the cryptocurrency is currently trading around the $1,550 support zone. Should the bulls fail to retain this level, Ethereum could experience further declines, potentially falling as low as $1,430.
While criticism from Bitcoin maximalists like Steve Barbour may raise concerns about Ethereum’s future prospects, it is essential to take a comprehensive and unbiased view of the situation. Ethereum’s status as the second-largest cryptocurrency, its vast ecosystem, and the considerable support it has garnered over the years speak volumes about its potential longevity and usefulness. As the cryptocurrency market continues to evolve, it is essential to approach these debates with an open mind and consider the ever-changing dynamics inherent in the blockchain industry.
